The issue, as the NYT reports, is the government's inability to get spending under control.

In terms of the larger, global ramifications, Ukraine hasn't been the concern of many folks -- not like Greece, Dubai, Ireland, and Spain have, anyway. It won't be ripping apart any currency unions if it defaults (thankfully).

But as we've recently noted, the world is divided right now between those countries whose government can spend and borrow (and where unemployment remains not that bad, for now) and governments without that luxury, where things have gone down the tubes (see: unemployment charts for Ireland and Spain).